Investopedia: Consider Real Estate, Gold as Alternatives to Cash

Tuesday, 03 Jul 2012 07:52 AM

By Dan Weil

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
With interest rates near record lows, what’s a wise investment strategy to follow?

Investopedia recommends that you have a look at real estate and gold.

The Case-Shiller/S&P home price index gained 1.3 percent in April from March, giving homeowners some hope.

Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown

“Many current and former homeowners may still be recovering from the housing crisis, and there's no guarantee that the market is now in recovery or will recover in the near future,” Investopedia states.

“[But] for those with a long-term investment objective, owning a home will keep pace with inflation and even beat it. Some investors are putting the cash to work by purchasing distressed properties and renting in this red hot rental market.”

As for gold, many experts recommend the precious metal as protection against the inflation that could ultimately result from massive central bank easing around the world.

“CNBC's Jim Cramer advises owning gold for just that purpose,” Investopedia notes.

High-yield (junk) bonds are another option. Some junk bond mutual funds and ETFs offer yields of more than 7 percent. “The downside is the increased level of risk, but for many investors the level of risk is appropriate,” Investopedia says.

Andrew Feltus, a junk bond fund manager at Pioneer Investments, says fundamentals line up well for the bonds now.

"That's not to say there won't be volatility," he tells The Wall Street Journal. "But if you're a buy-and-hold investor, you should be happy in five years."

Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown





© 2014 Moneynews. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved